FIH Mobile writes off another $40 mn of its $200 mn investment in Snapdeal
FIH Mobile of Hong Kong, a unit within the Foxconn group has decided to write off the remaining $40 million of its $200 million investment in Indian ecommerce company Snapdeal. Jasper Infotech, the parent company that owns Snapdeal had received funding from different sources in its heydays, including $200 million from FIH Mobile.
However, after the attempts to merge Snapdeal with Flipkart failed, it has been a downward spiral for the ecommerce marketplace and investors like FIH Mobile have concluded that it is more prudent to forget the investment as a loss in their books and move on. The accounting term for this is impairment loss, meaning even if there are any possible future earnings from the investment, it would be negligible when compared to the cost of holding on to the investment.
The bulk portion of $160 million was already written off earlier. This brings the involvement of Foxconn in Snapdeal as an investor to a close as on December 31, 2017.
PostedOn: 15 May 2018
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